Google alphabet search better based on new accounting, metrics 04/24/2018

The net profits of Alphabet, Google's parent company, soared 73% to $ 9.4 billion during the first quarter of 2018, up from $ 5.4 billion compared to the same period from last year. The total of the company Revenues for the quarter increased 25.9% to $ 31.15 billion, up from $ 24.75 billion in the same quarter of the previous year.

Helping increase profits was a bet on the Uber and Google ride car service advertising business.

Advertising revenues reached $ 27 billion in the first quarter of 2018, up from $ 21.4 billion in the same quarter of the previous year. The members of the network generated $ 4.6 billion, from $ 4 billion, and Google's other revenue came to $ 4.3 billion, up from $ 3.2 billion, respectively.

During the quarter, Nest smart home devices played an important role in the company earnings. Alphabet brought the company together with Google. Nest sales now fall within Google in a category called "Other bets".

Revenue from other bets increased slightly to $ 150 million, from $ 132 million a year ago. Other bets had an operating loss of $ 571 million, down from $ 703 million.

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The alphabet slightly changed its monetization metrics for members of the Google network. the income of the properties of the percentage change in the number of clicks paid and the cost per click for the percentage change in the number of impressions and the cost per impression, while the monetization the metrics for Google property revenues remain unchanged.

Paid clicks on Google properties increased by 59%. The cost per click on Google properties fell by 19%. Impressions on Google network properties members remain unchanged for a year, but increased 8% quarter-on-quarter. The cost per impression in the properties of the members of the Google network increased 18% in the quarter, in comparison with the quarter of the previous year, and They fell 10% QT.

Traffic acquisition costs (TAC) reached 24% of Google's total advertising revenue in the quarter, 22% more than a year ago.

The change in consumer behavior is placing Google's business model is under pressure, according to Adam Epstein, president and chief operating officer of adMarketplace. "Consumers are looking outside of the legacy search engines in a accelerating the pace by which Google's traffic costs continue to skyrocket, "he said." They're buying search traffic they used to get for free. "

Some experts They suggest that one way for Google to protect their profits is to pass these costs to their advertisers by increasing the cost per click. Epstein has been hearing reports of this throughout the market verticals, especially in terms of brand, which could explain why Google decided to end "a decade of tradition of transparent CPC reporting of its associated network," he said.